The calculations below outline how an intrinsic value for AGNC Investment is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

The current share price of
AGNC Investment
is above its future cash flow value.

Often investors are willing to pay a
premium
for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
AGNC Investment's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
AGNC Investment's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

AGNC Investment's earnings are expected to grow significantly at over 20% yearly.

AGNC Investment's revenue is expected to grow significantly at over 20% yearly.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

We assess
AGNC Investment's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)

Has the earnings growth in the last year exceeded that of the
Mortgage REITs
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
AGNC Investment
has a total score of
1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

AGNC.N Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

GaryKain

COMPENSATION

$14,645,850

AGE

53

TENURE AS CEO

3 years

CEO Bio

Mr. Gary D. Kain served as the Chief Executive Officer and Director of MTGE Investment Corp. since March 17, 2016 until May 2, 2018 and its Chief Investment Officer since March 2011 until May 2, 2018. Mr. Kain has been Chief Investment Officer of AGNC Investment Corp. since January 26, 2009 and has been its Chief Executive Officer and Director since March 17, 2016. He has been the President of American Capital Agency Management, LLC since October 2009. He served as the President at AGNC Investment Corp. from April 25, 2011 to March 31, 2018 and served as its Senior Vice President from January 26, 2009 to April 25, 2011. He served as the President of MTGE Investment Corp. since March 2011 until March 2018. Mr. Kain served as a Senior Vice President of American Capital Agency Management, LLC. He served as Senior Vice President and Managing Director of RMBS Team at American Capital, Ltd. since January 2009. He served as Senior Vice President of Investments and Capital Markets of Federal Home Loan Mortgage Corporation ("Freddie Mac") from May 1, 2008 to January 20, 2009 and served as its Head of Investments & Capital Markets since October 2008 and Senior Vice President. He served as Senior Vice President of Mortgage Investments & Structuring of Freddie Mac from February 2005 to April 2008 and was responsible for managing all of its mortgage investment activities. Prior to that, Mr. Kain served in several other positions at Freddie Mac since 1988, including Vice President of Mortgage Investments and Structuring and Vice President of Mortgage Portfolio Strategy from 2001 to 2005. Previously, he also served as the Head Trader in Freddie Mac's Securities Sales & Trading Group from 1995 to 2001, where he was responsible for managing all trading decisions including REMIC structuring and underwriting, hedging all mortgage positions, income generation and risk management. Prior to that, he served as a Senior Trader at Freddie Mac, responsible for managing the adjustable-rate mortgage and REMIC sectors. Mr. Kain joined Freddie Mac in 1988 as an Analyst in the Financial Research Department.

CEO Compensation

Gary's compensation has been consistent with company performance over the past year.

Gary's remuneration is higher than average for companies of similar size in United States of America.

Management Team Tenure

Average tenure and age of the
AGNC Investment
management team in years:

2.7

Average Tenure

48

Average Age

The tenure for the AGNC Investment management team is about average.

Management Team

Gary Kain

TITLE

CEO, Chief Investment Officer & Director

COMPENSATION

$15M

AGE

53

TENURE

3 yrs

Peter Federico

TITLE

President & COO

COMPENSATION

$5M

AGE

52

TENURE

1 yrs

Bernie Bell

TITLE

Senior VP & CFO

COMPENSATION

$1M

AGE

46

TENURE

1 yrs

Kenneth Pollack

TITLE

Senior VP

COMPENSATION

$1M

AGE

50

TENURE

2.7 yrs

Christopher Kuehl

TITLE

Executive Vice President of Agency Portfolio Investments

COMPENSATION

$4M

AGE

44

TENURE

7 yrs

Aaron Pas

TITLE

Senior Vice President of Non-Agency Portfolio Investments

COMPENSATION

$2M

AGE

37

Katie Wisecarver

TITLE

Vice President of Investor Relations

TENURE

2.7 yrs

Sean Reid

TITLE

Senior Vice President of Strategy & Corporate Development

TENURE

2.7 yrs

Jason Campbell

TITLE

Head of Asset & Liability Management and Senior Vice President

TENURE

2.7 yrs

Amie Wright

TITLE

Senior Vice President of Internal Audit

TENURE

2.7 yrs

Board of Directors Tenure

Average tenure and age of the
AGNC Investment
board of directors in years:

2.9

Average Tenure

55

Average Age

The average tenure for the AGNC Investment board of directors is less than 3 years, this suggests a new board.

AGNC.N News

Simply Wall St News

AGNC.N Company Info

Description

AGNC Investment Corp. operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by government-sponsored enterprise or by the United States government agency. It funds its investments primarily through short-term borrowings structured as repurchase agreements. The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as American Capital Agency Corp. and changed its name to AGNC Investment Corp. in September 2016. AGNC Investment Corp. was founded in 2008 and is headquartered in Bethesda, Maryland.

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